Advanced Micro Ruses, Inc. (AMD) shares rose more than 3% on Tuesday morning before giving up those gains and moving into the red later in the day. Piper Sandler upgraded the chipmaker from Uninvolved to Overweight and raised its price target from $45 to $56 prior to the market open. Analyst Harsh Kumar supposes that the company is well positioned to gain market share with a solid product line-up over the next a few years and sees this week’s Analyst Day as a potential catalyst.
The move follows similar sentiments from Bank of America analysts on Monday. While they wish the coronavirus outbreak to pressure the prior outlook, the analyst firm raised its price target on AMD shares from $58 to $62, foretelling that management would detail a long-term model that demonstrates a path to $2.00 to $2.50 in earnings per deal.
From a technical standpoint, the stock briefly broke out from the 50-day moving average at $49.32 ahead giving up those gains. The relative strength index (RSI) remains at neutral levels at 41.34, but the moving average convergence divergence (MACD) abides in a bearish downtrend. These indicators suggest that the stock could see more downside ahead.
Traders should pore over for a breakout from the 50-day moving average toward upper trendline resistance and prior highs near $60.00 or a time lower to test trendline support near reaction lows at $41.00. The primary upcoming catalyst will be AMD’s Analyst Day on March 5, 2020, where the callers will update its guidance and discuss the impact of the coronavirus.
The author holds no position in the stock(s) mentioned except completely passively managed index funds.